In this article we discuss the 10 best uranium stocks to buy now.
The long-term demand for uranium has been on an upward trajectory as developing and emerging economies opt for nuclear fuel to solve their energy problems, primarily because renewable solutions like solar and wind are unreliable base sources for electrical grids and drive up prices, hurting consumers who subsequently influence energy policymaking in this regard. As a result, the global demand for uranium was close to 180 million pounds in 2020. Market experts believe that this figure is set to grow to almost 200 million pounds within the next five years.
Some of the companies that can ride this nuclear fuel boom are the Rio Tinto Group (NYSE: RIO), BHP Group (NYSE: BHP) and Cameco Corporation (NYSE: CCJ). All three are major mining enterprises with significant stakes in the exploration and processing of uranium. Rio Tinto Group (NYSE: RIO) is based in the United Kingdom, BHP Group (NYSE: BHP) operates from Australia, and Cameco Corporation (NYSE: CCJ) is a Canadian company.
Even though industry analysts are bullish on the uranium future, the ultimate demand for the nuclear resource in the coming months and years will likely depend on several factors, including the number of new uranium-related projects, the amount of time it takes to complete those already under construction, as well as the reactors that are closed down. Governments around the world have begun to crack down on the environmental impacts of nuclear fuel, a major point of contention being the safe storage of spent fuel with hazardous properties.
Supply constraints that have sprung up as the economy slowly reopens following the pandemic have pushed uranium prices to new highs in recent weeks. However, it remains to be seen whether these gains can offset the lows of the previous year and sustain long enough to interest investors. Concerns related to the depletion of uranium at some major mining sites, as well as peak production, have also hit the industry. However, despite the problems, uranium remains one of the best performing commodities in the world along with gold.
Mining stocks have been a major growth catalyst over the past few months, rivaling tech-led disruption that has had a huge effect on the overall market dynamics. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Image by Markus Distelrath from Pixabay
With this context in mind, here is our list of the 10 best uranium stocks to buy now
Best Uranium Stocks to Buy Now
10. Uranium Royalty Corp. (NASDAQ: UROY)
Number of Hedge Fund Holders: N/A
Uranium Royalty Corp. (NASDAQ: UROY) is a Canada-based company that makes investments in uranium-related royalties, streams, debt and equity. It was founded in 2017 and is placed tenth on our list of 10 best uranium stocks to buy now. The stock has returned more than 230% to investors over the course of the past twelve months. Some of the projects that the firm holds royalty interests in include Church Rock, Dewey-Burdock, Lance, Roca Honda, Reno Creek, Roughrider, and Michelin, among others.
On April 29, investment advisory HC Wainwright reiterated a Buy rating on Uranium Royalty Corp. stock with a price target of $3.6. The rating indicated upside potential for the stock that has a 52-week high of $3.58.
Just like Rio Tinto Group, BHP Group, and Cameco Corporation, Uranium Royalty Corp. is one of the best uranium stocks to buy now.
9. Lightbridge Corporation (NASDAQ: LTBR)
Number of Hedge Fund Holders: N/A
Lightbridge Corporation (NASDAQ: LTBR) is a Massachusetts-based nuclear fuel technology development company. It was founded in 1992 and is ranked ninth on our list of 10 best uranium stocks to buy now. The company’s shares have returned more than 52% to investors year-to-date. In addition to stakes in nuclear fuel technology, the company also provides nuclear energy consulting services. The firm aims to reduce the environmental impact of nuclear technology on the environment through fuel development.
On May 11, Lightbridge Corporation posted results for the first three months of 2021, reporting cash equivalents of $15.2 million, compared to $21.5 million in the preceding quarter. The company said research and development costs were consistent through the first quarter of 2021.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Schonfeld Strategic Advisors is a leading shareholder in Lightbridge Corporation with 15,300 shares worth more than $98,000.
Just like Rio Tinto Group, BHP Group, and Cameco Corporation, Lightbridge Corporation is one of the best uranium stocks to buy now.
8. Denison Mines Corp. (NYSE: DNN)
Number of Hedge Fund Holders: 10
Denison Mines Corp. (NYSE: DNN) is a Canada-based uranium exploration, development, and production company. It was founded in 1997 and is placed eighth on our list of 10 best uranium stocks to buy now. The stock has offered investors returns exceeding 195% over the course of the past twelve months. The company is famous for uranium mining in the Blind River and Elliot Lake, but has recently expanded into other areas. It was formerly known as Uranium Corporation but changed to Denison Mines in 2006.
On April 14, Denison Mines Corp. stock jumped more than 5% after the company announced that it had discovered new high-grade uranium mineralization at the McClean Lake. The firm is working on the project with the help of operator Orano Canada.
At the end of the first quarter of 2021, 10 hedge funds in the database of Insider Monkey held stakes worth $18.1 million in Denison Mines Corp., up from 6 in the previous quarter worth $7.6 million.
Just like Rio Tinto Group, BHP Group, and Cameco Corporation, Denison Mines Corp. is one of the best uranium stocks to buy now.
7. Energy Fuels Inc. (NYSE: UUUU)
Number of Hedge Fund Holders: 12
Energy Fuels Inc. (NYSE: UUUU) is a Colorado-based uranium mining company founded in 1987. It is ranked seventh on our list of 10 best uranium stocks to buy now. The company’s shares have returned more than 312% to investors over the past year. Energy Fuels is the leading US-based producer of uranium and vanadium. The company has also expanded in recent years, emerging as a player in the commercial rare earth business. The core business of the firm remains the extraction, recovery, exploration, and sale of uranium.
On May 13, Energy Fuels Inc. posted earnings results for the first quarter of 2021, reporting earnings per share of -$0.08, missing market estimates by $0.04. The revenue over the period was $0.35 million, down 10% year-on-year.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Energy Fuels Inc. with 365,006 shares worth more than $2 million.
6. Uranium Energy Corp. (NYSE: UEC)
Number of Hedge Fund Holders: 7
Uranium Energy Corp. (NYSE: UEC) is a Texas-based uranium mining and exploration company founded in 2003. It is placed sixth on our list of 10 best uranium stocks to buy now. The stock has offered investors returns exceeding 213% over the past year. The company has mining interests in the United States, Canada, and Paraguay. Some of the projects it has stakes in include Palangana, Goliad, Burke Hollow, Longhorn, Salvo, Anderson, Workman Creek, and Los Cuatros, among others.
In January, Uranium Energy Corp. announced that it had restarted work on the Burke Hollow ISR project in Texas, which the company said was the newest and largest ISR wellfield being developed in the United States.
At the end of the first quarter of 2021, 7 hedge funds in the database of Insider Monkey held stakes worth $12.3 million in Uranium Energy Corp., down from 10 in the previous quarter worth $8.6 million.
Just like Rio Tinto Group, BHP Group, and Cameco Corporation, Uranium Energy Corp. is one of the best uranium stocks to buy now.
5. BHP Group (NYSE: BHP)
Number of Hedge Fund Holders: 23
BHP Group is an Australia-based global resources company founded in 1885. It is ranked fifth on our list of 10 best uranium stocks to buy now. The stock has returned more than 48% to investors over the course of the past twelve months. The group has a diverse range of interests in mining, with stakes in oil, gas, copper, silver, zinc, and uranium, among other resources. In 2020, the uranium production of BHP was 3,678 metric tons of payable metal in concentrate.
BHP Group is a solid option for dividend investors as the firm pays a regular and healthy dividend. On March 1, the company declared an ADS interim dividend of $2.02 per share.
Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in BHP Group with 7.9 million shares worth more than $553 million.
In its Q1 2021 investor letter, Harding Loevner, an asset management firm, highlighted a few stocks and BHP Group (NYSE: BHP) was one of them. Here is what the fund said:
“Our purchase of Australian mining company BHP is an example of a quality company at a moderate valuation that should deliver attractive long-term returns. We believe the market has undervalued its enduring competitive advantage due to its low cost iron and copper mining operations which has allowed the company to deliver consistent profits and cash flows across the inevitable ups and downs of the global metals cycle. While the variability of commodity prices prevents BHP from scoring in the top ranks of measured quality, we are willing to bear some of that uncertainty in return for a more attractive valuation given the company’s strong business fundamentals.”
4. Rio Tinto Group (NYSE: RIO)
Number of Hedge Fund Holders: 25
Rio Tinto Group is a London-based mining company founded in 1873. It is placed fourth on our list of 10 best uranium stocks to buy now. The company’s shares have returned more than 56% to investors over the past year. The company has interests in iron ore, copper, diamonds, gold and uranium, among other metals. The company also has underground mines, mills, refineries, smelters, power stations, and research and service establishments. It is one of the biggest mining companies in the world in terms of market capitalization.
On April 7, Rio Tinto Group announced that it had started production of battery-grade lithium from waste rock at a pilot plant in California. The shares of the company jumped more than 1.5% after the announcement.
At the end of the first quarter of 2021, 25 hedge funds in the database of Insider Monkey held stakes worth $1.5 billion in Rio Tinto Group, down from 26 in the preceding quarter worth $1.7 billion.
3. NexGen Energy Ltd. (NYSE: NXE)
Number of hedge fund holders: 13
NexGen Energy Ltd. (NYSE: NXE) is a Canada-based company founded in 2011 that is working on the exploration, development, and acquisition of uranium-related projects. It is ranked third on our list of 10 best uranium stocks to buy now. The stock has returned more than 222% to investors over the course of the past twelve months. One of the premier projects of the firm is the Rook I project that consists of 32 contiguous mineral claims over 35,065 hectares located in the Athabasca Basin of Saskatchewan region.
In February, NexGen Energy Ltd. shares were down more than 6% post-market after the firm announced that a syndicate of underwriters led by BMO and Canaccord Genuity had agreed to buy 33.4 million NextGen shares at C$4.50 per share in a deal offering.
Out of the hedge funds being tracked by Insider Monkey, New York-based firm Falcon Edge Capital is a leading shareholder in NexGen Energy Ltd. with 6.2 million shares worth more than $22.7 million.
2. Ur-Energy Inc. (NYSE: URG)
Number of hedge fund holders: 4
Ur-Energy Inc. (NYSE: URG) is a Colorado-based company that engages in the mining, recovery, and processing of uranium. It was founded in 2004 and is placed second on our list of 10 best uranium stocks to buy now. The company’s shares have returned more than 152% to investors over the course of the past twelve months. The company has 12 uranium-related mining interests in the United States, including the Lost Creek project that comprises a total of 1,800 unpatented mining claims and three Wyoming mineral leases.
On May 7, Ur-Energy Inc. posted quarterly earnings results for the first three months of 2021, reporting earnings per share of -$0.04, missing market predictions by $0.03.
At the end of the first quarter of 2021, 4 hedge funds in the database of Insider Monkey held stakes worth $6 million in Ur-Energy Inc., the same as in the preceding quarter worth $4.8 million.
1. Cameco Corporation (NYSE: CCJ)
Number of Hedge Fund Holders: 30
Cameco Corporation is a Canada-based company that produces and sells uranium. It was founded in 1988 and is ranked first on our list of 10 best uranium stocks to buy now. The stock has returned more than 103% to investors over the past year. The firm is the second largest uranium producer in the world, accounting for at least 18% of the total production of the resource. In addition to North America, the company has business interests in Europe and Asia as well.
Cameco Corporation posted quarterly earnings results on May 7, reporting earnings per share of -$0.07, beating market predictions by $0.01. The revenue for the first three months of 2021 was $290 million, down 16% year-on-year.
Out of the hedge funds being tracked by Insider Monkey, Florida-based investment firm Kopernik Global Investors is a leading shareholder in Cameco Corporation with 9.8 million shares worth more than $163 million.
You can also take a peek at 10 Blue Chip Dividend Stocks Hedge Funds Are Buying and 14 Best European Dividend Stocks To Buy.
Follow Insider Monkey on Twitter
Suggested articles:
- 10 Best Dividend Stocks for Passive Income
- 10 Best Healthcare Dividend Stocks
- 10 Extreme Dividend Stocks with Huge Upside
This article is originally published at Insider Monkey.
